IMF: Decisive reforms key to stabilise Nigeria’s economy

The International Monetary Fund (IMF) is calling on Nigeria to take decisive actions to stabilize its economy. In a recent interview on CNBC Africa, Tilewa Adebajo, CEO of CFG Advisory, discussed the IMF's recommendations for Nigeria. The IMF is urging Nigeria to finalize the securitization of the 22.7 trillion-naira ways and means advances from the Central Bank of Nigeria. Additionally, the IMF is recommending the removal of petrol subsidies by mid-2023. One key recommendation from the IMF is for Nigeria to implement decisive reforms to address the challenges in its economy. This includes finalizing the securitization of the ways and means advances from the Central Bank of Nigeria, which would help improve transparency and accountability in the country's financial system. Tilewa Adebajo emphasized the importance of these reforms in stabilizing Nigeria's economy and restoring investor confidence. Another crucial recommendation is the removal of petrol subsidies by mid-2023. The IMF believes that removing these subsidies would lead to a more efficient allocation of resources and reduce the fiscal burden on the government. Tilewa Adebajo highlighted the need for Nigeria to gradually phase out petrol subsidies to ensure a smooth transition and minimize the impact on the most vulnerable segments of the population. In the interview, Tilewa Adebajo underscored the significance of these reforms for Nigeria's economic sustainability and long-term growth. He pointed out that implementing the IMF's recommendations would help address key structural challenges and pave the way for a more resilient and diversified economy. Adebajo also highlighted the importance of collaboration between the government, regulatory authorities, and other stakeholders to successfully implement these reforms. Overall, the IMF's recommendations underscore the need for Nigeria to take bold and proactive measures to address its economic challenges. By finalizing the securitization of ways and means advances and phasing out petrol subsidies, Nigeria can lay the foundation for a more stable and sustainable economic future. It is essential for the Nigerian government to prioritize these reforms and work towards creating a more transparent, efficient, and investor-friendly economic environment.